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The Clean Energy States Alliance publishes recommendations for government agencies and policymakers for designing low-income solar programs

May 16, 2017

The Clean Energy States Alliance (CESA) has taken an in-depth look at successful and promising policies and programs that can be used to bring the benefits of solar to low-income consumers. Bringing the Benefits of Solar Energy to Low-Income Consumers, a guide authored by Bentham Paulos of PaulosAnalysis, outlines the obstacles that low-income households face in accessing solar power and provides a detailed overview of strategies that policymakers and government agencies can use to encourage low-income solar adoption.

Despite the increasing affordability of solar and solar-friendly policies, some low-income households still face substantial obstacles to going solar, such as being renters and not homeowners, or having little savings. Many policies that promote solar power were not designed to overcome barriers that low-income customers face, while policies that help the poor were not designed to access solar power, since solar has only recently become a cost-effective option.

The declining cost of solar has led to an explosion of innovation among policies, programs, and business models to benefit low-income customers. The CESA guide describes many financing ideas to help make solar more affordable for low-income households, including on-bill repayment, property-assessed clean energy (PACE), and pay as you save (PAYS) programs. It covers direct incentives such as renewable energy certificates (RECs) and solar RECs, compensation mechanisms (such as net metering and virtual net metering), and new business models such as crowdfunding.

"This guide offers the most comprehensive examination to date of crafting solar programs and policies to benefit low-income customers," said CESA Project Director Nate Hausman. "Distributed solar can be a powerful tool to help reduce low-income customers' energy burdens and contribute to healthier and more secure communities."

The guide has six key recommendations for government agencies and policymakers to consider when approaching low-income solar:

Leverage state energy policy to support low-income deployment. Many states already have policies to encourage renewable energy that can be modified to support low-income access to solar.

Adapt housing and anti-poverty programs to include low-income solar. There is a vast array of federal and state programs intended to reduce poverty and promote economic development that can harness solar to help fulfill their aims.

Set up a financial vehicle. Various financial strategies can enable access to solar.

Promote volunteerism. Volunteer labor can drive down the cost of installations while providing job training and community service opportunities.

Partner with trusted low-income allies. Stakeholder engagement and coalition building can help ensure greater buy in and enrollment during program development and implementation.

"Nobody needs to save on their electric bills more than low-income households, but this population also has the hardest time accessing solar," said the author, Bentham Paulos. "This guide offers a suite of policy options to help bring the benefits of solar power to those who need it most."

CESA, a national, nonprofit coalition of public agencies and organizations working together to advance clean energy, published the guide as part of its Sustainable Solar Education Project, which provides information and educational resources to help states and municipalities ensure that distributed solar electricity remains consumer friendly and benefits low- and moderate-income households. This project is funded through the U.S. Department of Energy SunShot Initiative's Solar Training and Education for Professionals program.

About the Clean Energy States Alliance: The Clean Energy States Alliance (CESA) is a national nonprofit coalition of public agencies and organizations working together to advance clean energy. CESA members mostly state agencies include many of the most innovative, successful, and influential public funders of clean energy initiatives in the country. CESA works with state leaders, federal agencies, industry representatives, and other stakeholders to develop and promote clean energy technologies and markets. CESA facilitates information sharing, provides technical assistance, coordinates multi-state collaborative projects, and communicates the positions and achievements of its members. For more information, visit www.cesa.org.

About the SunShot Initiative: The U.S. Department of Energy SunShot Initiative is a collaborative national effort that aggressively drives innovation to make solar energy fully cost-competitive with traditional energy sources before the end of the decade. Through SunShot, the Energy Department supports efforts by private companies, universities, and national laboratories to drive down the cost of solar electricity to $0.06 per kilowatt-hour. Learn more at energy.gov/sunshot.